After payment of a claim, Credit Oman has the right to take over the debt, but while it does exercise this right in some instances, it will normally require the policyholder to continue recovery action along the path already agreed with Credit Oman subject to any further requirements it may have.
Yes, the Agency will reimburse the policyholder the legal fees paid to lawyers in the buyer’s country up to the proportion in which liability for the debt has been admitted by Credit Oman. Also, the policyholder should obtain concurrence form the Agency to initiate legal action for recovery.
After payment of a claim, Credit Oman has the right to take over the debt, but normally Credit Oman requires the policyholder to proceed with the recovery action along the path already advised and agreed by Credit Oman considering the insured being the contractual party with the buyer for the export sales made.
The exporter should keep the Agency informed of all actions taken to recover amounts in default. The Agency also will assist the exporter towards recovery action and suggest certain course of action based on the development against the action already taken by the exporter. The exporter is required to act on the basis of such advice provided by the Agency in accordance with the terms of the Export Credit Policy.
Apart from indemnifying the exporters for losses, does Credit Oman contribute towards recovery costs? If so, what nature of costs incurred by the exporter?
Yes. Credit Oman normally reimburses the legal fees paid to the appointed lawyer and the court, in the buyer’s country in the proportion of its liability to the total outstanding debt provided the claim for loss is admitted by Credit Oman. It does not contribute other expenses such as travel expenses, auditor’s fees, translation charges and any overhead expenses, etc. However, Credit Oman is not obliged to share recovery costs, as per the policy. Also, being an insured, you should inform Credit Oman, on the legal fees agreed upon in advance.
The exporter has a prime responsibility as per the Policy to vigorously pursue recovery action and to keep the Agency informed of such action from time to time. As and when any amount is recovered, the amount will have to be shared with the Agency in the ratio in which the loss was borne.
In case of recovery expenses, documentary evidence of recovery expenses inquired by the exporter with the approval of the Agency should be furnished to the Agency to reimburse the recovery expenses in the same proportion in which losses were apportioned between the Agency and the exporter.